Nava Ltd’s step-down subsidiary, Maamba Collieries Ltd (MCL), has substantially reduced its liabilities.
Out of a total debt of ₹3,998 crore, the Hyderabad-based company repaid ₹2,996 crore as on December 1, 2022, and the liabilities now stand at ₹1,707 crore as on date. This includes the repayment of overdue principal instalments and other liabilities, according to a release.
Following the successful resolution of arbitration against Zambia Electricity Supply Corporation Ltd (ZESCO), a consent award of $518 million was issued by the arbitral tribunal in London in December 2022, in favour of MCL, for the recovery of outstanding receivables.
ZESCO had proposed to discharge a total of $338 million by December 2023 and the balance of $180 million by December 2024. Till date, ZESCO has made payments totalling $181 million, including a recent payment of $60 million.
“The successful resolution of the arbitration case and the substantial debt reduction are significant milestones in our journey towards the long-term success of the Maamba project. We are grateful to our shareholders, lenders and employees for their unwavering support throughout this period,” Ashwin Devineni, CEO, Nava Ltd., said in a release.